A FREEHOLD hotel development site at Lavender has been put up for sale with a guide price of about $28 million to $30 million.

The "regularly shaped" plot has an area of about 3,516 square feet and an allowable plot ratio of three, said marketing agent CBRE. The site has been granted provisional permission for the development of a six-storey hotel comprising 60 rooms.

The guide price works out to be about $466,000 to $500,000 per room.

"Hotel development sites such as this are seldom available and it gives a developer or investor a rare opportunity to capitalise on the limited supply and robust demand for economy to mid-scale hotels in the area," said Galven Tan, CBRE's associate director of investment properties.

The latest site at 48 Horne Road is located about 250 metres from Lavender MRT Station, and is within a five to 10-minute drive to the central business district.

"The vibrant neighbourhood also benefited from the recent extensive makeover of Kitchener Complex, which included the opening of a convenience supermarket located directly across from the subject property," CBRE said in a statement.

The new hotel development will replace the existing four-storey industrial building.